Tuesday, November 07, 2006

This book by Nolan McCarty, Keith Poole, and Howard Rosenthal has a
pessimistic message. When there is rising inequality, as now, there is generally
a corresponding increase in political polarization. The polarization makes it
difficult for government to address serious economic problems which, as a
consequence, often go unattended. What is the solution? With government unable
to address serious problems due to the political stalemate, then unfortunately,
"[p]revious periods of polarization have ended as major events, such as World
Wars I and II and the Great Depression":

That is the message of “Polarized America: The Dance of Ideology and Unequal
Riches,” written by Princeton’s Nolan McCarty ... and two colleagues. The book,
which has been cited as a breakthrough in the study of America’s bitterly
divided political environment, shows that growing income disparities and
increasing immigration levels have driven the current and previous periods of
polarization. As Republicans and Democrats have locked horns in promoting
policies catering to their core constituents, they have, in turn, exacerbated
the divisions between America’s economic classes.

“The consequences of polarization that a lot of scholars have focused on have
primarily been the tone and the tenor of politics. But this book focuses a lot
more on how it has affected economic policy,” said McCarty, a professor of
politics and public affairs and associate dean of the Woodrow Wilson School of
Public and International Affairs. “In a more polarized environment, it is much
more difficult for political coalitions to form and to pass new legislation and
adapt to changing economic and social circumstances.

“The main effect has been a lack of government response to problems. You can
identify current issues such as the lack of health care reform, the inability of
the minimum wage to keep up with inflation and the deterioration in several
other social benefits,” McCarty said. “The main consequences for policy are
either that serious problems go unaddressed or the solutions tend to be
ideological and one-sided.” ...

The book debunks a common refrain of political pundits that America’s
political divisions have never been as stark as they are today. “We can put to
rest the notion that the country has never been this polarized,” McCarty said.
“In other periods of time, especially after Reconstruction in what we call the
‘Gilded Age,’ the parties were just as divergent, and partisanship was just as
important. You can identify many similarities between the 1890s and the current
period, and the very high levels of economic inequality are among the most
important.” ...

From the 1970s to 9/11 The current period of polarization has been building
since the 1970s due to economic changes, such as advances in technology, that
have created a broader gap between high- and low-wage earners, McCarty said. In
the current period, as in previous ones, rising immigration has compounded the
economic disparity, as many immigrants take low-paying jobs and do not carry the
political clout of wealthier Americans.

“Going into the 1970s there was a very strong consensus for a welfare state —
the Republicans wanted a little less and the Democrats wanted a little more, but
there was a big consensus,” McCarty noted. “As the economic paths of voters
diverged, the partisanship diverged. Most of that has come from the way the
Republican Party responded to the winners of these economic shifts. The cost of
the social safety net became apparent, and large segments of voters believed
that by reducing taxes and deregulating the economy that the country could be
made better off. It certainly was made better off for those from the middle to
the top, but not so much for those at the bottom.”

Previous periods of polarization have ended as major events, such as World
Wars I and II and the Great Depression, “changed the economy such that
inequality was lessened or changed people’s sense of a shared fate in a
significant way,” McCarty said. ...

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Political Polarization and Economic Policy

This book by Nolan McCarty, Keith Poole, and Howard Rosenthal has a
pessimistic message. When there is rising inequality, as now, there is generally
a corresponding increase in political polarization. The polarization makes it
difficult for government to address serious economic problems which, as a
consequence, often go unattended. What is the solution? With government unable
to address serious problems due to the political stalemate, then unfortunately,
"[p]revious periods of polarization have ended as major events, such as World
Wars I and II and the Great Depression":

That is the message of “Polarized America: The Dance of Ideology and Unequal
Riches,” written by Princeton’s Nolan McCarty ... and two colleagues. The book,
which has been cited as a breakthrough in the study of America’s bitterly
divided political environment, shows that growing income disparities and
increasing immigration levels have driven the current and previous periods of
polarization. As Republicans and Democrats have locked horns in promoting
policies catering to their core constituents, they have, in turn, exacerbated
the divisions between America’s economic classes.

“The consequences of polarization that a lot of scholars have focused on have
primarily been the tone and the tenor of politics. But this book focuses a lot
more on how it has affected economic policy,” said McCarty, a professor of
politics and public affairs and associate dean of the Woodrow Wilson School of
Public and International Affairs. “In a more polarized environment, it is much
more difficult for political coalitions to form and to pass new legislation and
adapt to changing economic and social circumstances.

“The main effect has been a lack of government response to problems. You can
identify current issues such as the lack of health care reform, the inability of
the minimum wage to keep up with inflation and the deterioration in several
other social benefits,” McCarty said. “The main consequences for policy are
either that serious problems go unaddressed or the solutions tend to be
ideological and one-sided.” ...

The book debunks a common refrain of political pundits that America’s
political divisions have never been as stark as they are today. “We can put to
rest the notion that the country has never been this polarized,” McCarty said.
“In other periods of time, especially after Reconstruction in what we call the
‘Gilded Age,’ the parties were just as divergent, and partisanship was just as
important. You can identify many similarities between the 1890s and the current
period, and the very high levels of economic inequality are among the most
important.” ...

From the 1970s to 9/11 The current period of polarization has been building
since the 1970s due to economic changes, such as advances in technology, that
have created a broader gap between high- and low-wage earners, McCarty said. In
the current period, as in previous ones, rising immigration has compounded the
economic disparity, as many immigrants take low-paying jobs and do not carry the
political clout of wealthier Americans.

“Going into the 1970s there was a very strong consensus for a welfare state —
the Republicans wanted a little less and the Democrats wanted a little more, but
there was a big consensus,” McCarty noted. “As the economic paths of voters
diverged, the partisanship diverged. Most of that has come from the way the
Republican Party responded to the winners of these economic shifts. The cost of
the social safety net became apparent, and large segments of voters believed
that by reducing taxes and deregulating the economy that the country could be
made better off. It certainly was made better off for those from the middle to
the top, but not so much for those at the bottom.”

Previous periods of polarization have ended as major events, such as World
Wars I and II and the Great Depression, “changed the economy such that
inequality was lessened or changed people’s sense of a shared fate in a
significant way,” McCarty said. ...